BILL NUMBER: AB 939	CHAPTERED  09/15/99

	CHAPTER   390
	FILED WITH SECRETARY OF STATE   SEPTEMBER 15, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 15, 1999
	PASSED THE ASSEMBLY   AUGUST 26, 1999
	PASSED THE SENATE   AUGUST 24, 1999
	AMENDED IN SENATE   AUGUST 19, 1999
	AMENDED IN SENATE   JUNE 28, 1999
	AMENDED IN ASSEMBLY   APRIL 27, 1999
	AMENDED IN ASSEMBLY   APRIL 7, 1999

INTRODUCED BY   Assembly Member Brewer
   (Coauthor:  Senator Rainey)

                        FEBRUARY 25, 1999

   An act to amend and renumber Section 39619 of, and to add Section
17584.1 to, the Education Code, relating to school facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 939, Brewer.  School facilities deferred maintenance.
   Existing law establishes the State School Deferred Maintenance
Fund which is continuously appropriated for the purposes for which it
is established.  Existing law requires the State Allocation Board to
apportion, from the State School Deferred Maintenance Fund, a
specified amount of funds to school districts on a 50% matching
basis, to the extent funds are available.
   This bill would require a governing board of a school district to
discuss proposals and plans for expenditure of funds for the deferred
maintenance of school district facilities at a regularly scheduled
public hearing, and would require the board to report to the
Legislature by March 1, in any year that the school district does not
set aside prescribed funds for facility deferred maintenance, with
copies to the Superintendent of Public Instruction, the State Board
of Education, the Department of Finance, the State Allocation Board,
and the public.  By establishing these additional requirements, this
bill would impose a state-mandated local program.
   This bill would make a technical, nonsubstantive conforming change
related to the reorganization of related provisions pursuant to
Chapter 227 of the Statutes of 1996.
   This bill would make technical changes to conform with AB 148 to
be operative only if (1) AB 148 contains certain provisions, and (2)
AB 148 is enacted and becomes effective on or before January 1, 2000.

  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares the following:
   (a) Because of the diminishing funds available through the excess
repayments from the State School Building Aid Program, the state has
been unable to fully fund the maximum amount of its contribution to
the deferred maintenance fund authorized by law since the early 1980'
s.
   (b) School districts have the expectation that state funds will be
available to match the local funds they set aside to meet their
deferred maintenance needs.
   (c) The state's practice of not providing consistent, ongoing
funding for deferred maintenance purposes has resulted in greater
future facilities costs and has reduced the quality of education that
can be provided to the state's 5.6 million public school pupils.
   (d) If repairs to school facilities are continually deferred,
school districts eventually face more expensive investments,
including, but not limited to, critical repairs, major
rehabilitation, or complete replacement.  School districts should be
discouraged from deferring maintenance projects in the short run,
because inadequate ongoing maintenance reduces the useful life of
facilities resulting in increased capital outlay needs, and putting
more pressure on schools to access more expensive bond dollars in the
long run.
   (e) Approximately $2.4 billion in backlogged, unfunded deferred
maintenance needs exist for K-12 schools statewide.
   (f) Educational research suggests a positive relationship between
pupil achievement and the condition of the facility in which pupils
are schooled.
   (g) It is important for school facilities to be maintained in
order to provide a safe, clean, adequate environment for teachers to
teach effectively and for pupils to be educated properly and to excel
academically.
  SEC. 2.  Section 39619 of the Education Code is amended and
renumbered to read:
   17584.  (a) Whenever, in any given fiscal year, a school district
has budgeted, exclusive of state matching funds and district funds
previously matched pursuant to subdivision (b), in its deferred
maintenance fund established pursuant to Section 17582 an amount
equal to, or greater than, that amount the district expended from its
general fund for major maintenance, repair, or modernization of
existing school buildings, as specified in Section 17582, exclusive
of categorical aid funds and any proceeds from the sale of district
property which were expended for the purpose of the district deferred
maintenance account, in either the 1978-79 or 1979-80 fiscal year,
adjusted annually to the current fiscal year in conformance with the
percentage change in the district revenue limit computed pursuant to
Section 42237 or 42238, the Superintendent of Public Instruction
shall so certify to the State Allocation Board.
   (b) The State Allocation Board shall apportion, from the State
School Deferred Maintenance Fund, to school districts an amount equal
to one dollar ($1) for each one dollar ($1) of local funds up to a
maximum of 1/2 percent of the district's current-year revenue limit
average daily attendance multiplied by the average, per unit of
average daily attendance, of the total expenditures and ending fund
balances of the total general funds and adult education funds for
districts of similar size and type, as defined in subdivision (b) of
Section 42238.4, for the second prior fiscal year, exclusive of any
amounts expended for capital outlay or debt service, to the extent of
funds available.
   (c) Notwithstanding subdivision (a), in order to be eligible to
receive state aid pursuant to subdivision (b), no district shall be
required to budget from local district funds an amount greater than
1/2 percent of the district's current-year revenue limit average
daily attendance, multiplied by the average, per unit of average
daily attendance, of the total expenditures and ending fund balances
of the total general funds and adult education funds for districts of
similar size and type, as defined in subdivision (b) of Section
42238.4 for the second prior fiscal year, exclusive of any amounts
expended for capital outlay or debt service.
  SEC. 3.  Section 17584.1 is added to the Education Code, to read:
   17584.1.  (a) The governing board of a school district shall
discuss proposals and plans for expenditure of funds for the deferred
maintenance of school district facilities at a regularly scheduled
public hearing.
   (b) In any year that the school district does not set aside 1/2 of
one percent of its current-year revenue limit average daily
attendance for deferred maintenance, the governing board of a school
district shall submit a report to the Legislature by March 1, with
copies to the Superintendent of Public Instruction, the State Board
of Education, the Department of Finance, and the State Allocation
Board.
   (c) The report required pursuant to subdivision (b) shall include
all of the following:
   (1) A schedule of the complete school facilities deferred
maintenance needs of the school district for the current year,
including a schedule of costs per schoolsite and total costs.
   (2) A detailed description of the school district's spending
priorities for the current year, and an explanation of why those
priorities, or any other considerations, have prevented the school
district from setting aside sufficient local funds so as to permit it
to fully fund its deferred maintenance program and, if eligible, to
participate in the state deferred maintenance funding program as set
forth in Section 17584.
   (3) An explanation of how the governing board of a school district
plans to meet its current-year facilities deferred maintenance needs
without setting aside the funds set forth in Section 17584.
   (d) Copies of the report shall be made available at each
schoolsite within the school district and shall be provided to the
public upon request.
   (e) The purposes of this section is to inform the public regarding
the local decisionmaking process relating to the deferred
maintenance of school facilities, and to provide a foundation for
local accountability in that regard.
  SEC. 3.5.  Section 17584.1 is added to the Education Code, to read:

   17584.1.  (a) The governing board of a school district shall
discuss proposals and plans for expenditure of funds for the major
maintenance of school district facilities at a regularly scheduled
public hearing.
   (b) In any year that the school district does not set aside
one-half of 1 percent of its current-year revenue limit average daily
attendance for major maintenance, the governing board of a school
district shall submit a report to the Legislature by March 1, with
copies to the Superintendent of Public Instruction, the State Board
of Education, the Department of Finance, and the State Allocation
Board.
   (c) The report required pursuant to subdivision (b) shall include
all of the following:
   (1) A schedule of the complete school facilities major maintenance
needs of the school district for the current year, including a
schedule of costs per schoolsite and total costs.
   (2) A detailed description of the school district's spending
priorities for the current year, and an explanation of why those
priorities, or any other considerations, have prevented the school
district from setting aside sufficient local funds so as to permit it
to fully fund its major maintenance program and, if eligible, to
participate in the state major maintenance funding program as set
forth in Section 17584.
   (3) An explanation of how the governing board of a school district
plans to meet its current-year facilities major maintenance needs
without setting aside the funds set forth in Section 17584.
   (d) Copies of the report shall be made available at each
schoolsite within the school district and shall be provided to the
public upon request.
   (e) The purpose of this section is to inform the public regarding
the local decisionmaking process relating to the major maintenance of
school facilities, and to provide a foundation for local
accountability in that regard.
  SEC. 4.  This bill and A.B. 148 both make amendments relating to
funding of school facility maintenance.  A.B. 148, in part, renames
the State Deferred Maintenance Fund to the School Major Maintenance
Match Fund and makes conforming changes relating to related local
school district funds.  Section 3.5 of this bill contains provisions
that conform to the name change relating to the state and local funds
proposed in A.B. 148, and Section 3 of this bill does not contain
those conforming changes.  Therefore, Section 3.5 of this bill shall
become operative only if (1) A.B. 148 contains the provisions
renaming the related funds, and (2) A.B. 148 is enacted and takes
effect on or before January 1, 2000, in which case Section 3 shall
not become operative.
  SEC. 5.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
